{#
 This Source Code Form is subject to the terms of the Mozilla Public
 License, v. 2.0. If a copy of the MPL was not distributed with this
 file, You can obtain one at https://mozilla.org/MPL/2.0/.
#}

{% extends 'foundation/base.html' %}

{% block page_title %}Mozilla 2006 Financial FAQ{% endblock %}

{% block article_title %}
  Mozilla 2006 Financial FAQ
{% endblock %}

{% block article_content %}
  <p>
   {% with form990='https://static.mozilla.com/foundation/documents/mf-2006-irs-form-990.pdf',
           statement='https://static.mozilla.com/foundation/documents/mf-2006-audited-financial-statement.pdf'
   %}
     This FAQ supplements the <a href="{{ form990 }}">Mozilla
     Foundation 2006 Form 990</a> and the <a
     href="{{ statement }}">consolidated financial
     statement for the Mozilla Foundation and the Mozilla
     Corporation</a>.{% endwith %}
  </p>

  <dl class="mzp-u-list-styled">
    <dt>Your contract with Google ends in November 2008. What happens
    then?</dt>
    <dd>
    <p>We have a range of options. We may continue to work with Google
    which has so far provided a good fit with what our users find useful
    in the product.  If for some reason that doesn't make sense then we
    could look at other potential partners.  We have significant retained
    earnings, which allows us a good degree of flexibility.</p>
    </dd>

    <dt>Your partnership with Google accounts for over 85% of your 2006
    revenue. How does this affect your independence?</dt>
    <dd>
    <p>We develop our product and technical direction as part of an open
    process unrelated to the search relationship with Google. We talk to
    Google about the parts of the product that offer Google services
    (i.e., the Firefox Start Page) and the services they provide, like
    anti-phishing. Otherwise Google does not have any special relationship
    to Mozilla project activities. We do not vet our initiatives with
    Google. We spent months talking to Google and Yahoo! before entering
    relationships with them to make sure they understood the separation
    between a search relationship and the rest of our activities.</p>
    </dd>

    <dt>You have a sizable cash reserve on hand (relative to your revenue).
    What plans do you have?</dt>
    <dd>
    <p>First, the cash reserve is of course a form of insurance against
    the loss of income.  We will continue to maintain enough of a reserve
    to allow us flexibility in making product decisions. Second, our main
    expenses to date &ndash; people and infrastructure &ndash; are increasing,
    and we'll continue to spend to meet needs in these areas. Third, our
    grant and grant-like funding are increasing as well. Fourth, our
    financial resources allow us to launch significant new programs, such
    as our mobile initiative we've started recently. And fifth, we expect
    the Mozilla Foundation to undertake significant new programs
    shortly.</p>
    </dd>

    <dt>Mozilla Foundation spending in 2006 seems low, especially the
    $80,000 in grants. Can you say more?</dt>
    <dd>
    <p>We planned 2006 spending on a conservative basis to make sure the
    Foundation remained sustainable amid the growth and change of becoming
    a much larger project. This meant we planned to spend income but not
    the basic principal of the Foundation in 2006 and perhaps 2007, until
    we have a good plan for the appropriate programs to put in place, and
    the people make good programs happen. It turned out that our
    investment income was greater than budgeted in 2006 as well.</p>

    <p>The total spent on grants and grant-related expenditures was
    approximately $285,000 in 2006. "Grants" has a very precise meaning in
    the tax and accounting world, and this is narrower than the funding
    programs we have in place.  So our forms show $80,000 in pure
    "grants", comprised of assistance to the Mozdev Community Organization
    (mozdev.org) and to Seneca College.  We also funded travel for a
    number of primarily non-employee Mozilla contributors to meet and work
    face-to-face; this shows up in a line item marked as "travel" and
    "conferences" (but not as "grants") and totaled approximately
    $40,000. Mozilla also funded technical work aimed at improving web
    accessibility to people with disabilities; this work was implemented
    via contracts with the people doing the work and totalled
    approximately $47,500. We also made additional grant-related program
    expenditures totaling $52,500, including a donation to the OpenBSD and
    OpenSSH projects and covering the expenses for a representative to the
    IETF. Finally, through our Community Giving Program we committed about
    $65,000 for machines (both individual PCs and hosted servers) for a
    number of community members and projects.</p>
    </dd>

    <dt>Any further corrections?</dt>
    <dd>
    <p>Mitchell Baker's 2006 salary is over-stated by 20%.  The amount
    reported in the Form 990 includes approximately $100,000 for a salary
    increase and one time bonus for 2005 that was not finally approved and
    paid until 2006.</p>
    </dd>
  </dl>
{% endblock %}
